A potential deal of around US$2.5bn to buy Swiss food giant Nestle’s US confectionery business could be completed this week, with Italy’s Ferrero seen as the frontrunner to outbid rival Hershey.

Media reports have been awash with talk of late as to which of the two confectionery giants will emerge as the winner in the bidding for Nestle’s US candy unit, which has brands including Butterfinger and Baby Ruth.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Reuters reported three unnamed sources as saying the deal could be signed off by the end of the week, with one adding  Ferrero – the owner of Nutella spreads and Tic Tac sweets – raised its offer last week in an attempt to outbid Hershey. According to the news agency, Ferrero is seen as the most likely candidate to win the business. 

Meanwhile, Bloomberg quoted a person familiar with the negotiations as saying Ferrero’s bid may amount to $2.8bn, with a deal likely to be signed off as early as Sunday.  

“[Executive chairman] Giovanni Ferrero is really committed to the deal, that’s why the group sweetened its offer to something in the area of $2.5bn,” Reuters reported the one source as saying. 

See Also:

Both news companies said Ferrero and Hershey declined to comment.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In December, Nestle told just-food it expects the sale of its US confectionery unit to be agreed in the first three months of this year. CNBC reported earlier this week Ferrero and Hershey submitted their bids last Friday (5 January), with expectations that the deal would go through for around $2bn to $2.5bn. 

Ferrero and Hershey have both in recent months used M&A to try to grow sales.

The Italian firm bought Ferrara Candy Co. of the US in October from private-equity company L. Catterton for an undisclosed amount.

And in December, Hershey acquired US business Amplify Snack Brands for $1.6bn.